If a seller backs out after accepting an offer, do they owe the listing agent a commission?

The correct answer is that the seller owes the listing agent a commission because the seller defaults by not providing marketable title. In real estate transactions, once a seller accepts an offer, they enter into a binding agreement with the buyer. If the seller later decides to back out of this agreement without a justified reason, it is considered a default on their part.

In this context, "providing marketable title" refers to the seller's obligation to deliver clear title to the property. If the seller backs out due to their failure to meet this obligation, such as not being able to convey ownership due to unresolved liens or other title issues, they are typically in breach of contract. This breach allows the listing agent to claim their commission since they fulfilled their duty to find a buyer willing to purchase the property under the agreed terms.

Other options present scenarios that do not align with real estate contract laws. For instance, the idea that the commission is negated simply because the buyer rescinds the offer does not hold under these circumstances; the seller's act of withdrawing is what triggers the commission liability. Additionally, since the sale was not finalized does not excuse the obligation of the seller to pay the commission if they were at fault for the deal falling through. Finally